The PetrolPlaza audio version is presented to you by UNITI expo, the leading retail petroleum and car wash trade fair in Europe.

English Español bp to reportedly exit Mexican oil market amidst shift to renewables

The British oil company is in the process of selling and returning its exploration blocks to the National Hydrocarbons Commission.



Last update:

Amidst its shift to focus on alternative and renewable energies, bp is reportedly in the process of divesting its oil assets in Mexico. According to a company representative, the company has sold or is in the process of returning the blocks for exploration it won to the country’s regulation entity, the National Hydrocarbons Commission (CNH for its acronym in Spanish).

As reported by the Bloomberg news agency, the firm is looking to focus on renewable projects after winning three exploration contracts associated with TotalEnergies, Equinor ASA, Qatar Petroleum and Hokchi Energy. The news of this withdrawal comes after the President's decision to turn back the clock on energy reforms, reducing private competition by favouring state oil giant Pemex by eliminating oil auctions.

Recent politics have elevated the tension within the sector, with private players denouncing the measures while also dealing with the pressure of reducing their carbon footprint throughout their businesses. This difficult context has even led to Talos Energy threatening international arbitration after Pemex was selected by the government to operate the mega oilfield discovered by the Houston driller.

As the agency reported, bp received authorization from the CNH this month to return its share of a contract in shallow waters that it won in a consortium with TotalEnergies, Qatar Petroleum and Hokchi. This comes after Total bought the company’s and Equinor’s shares of one deep-water block and another in which bp shared with Equinor and Total was returned to the state, both acquisitions were made in February.

Bp was one of the main players that established its operations in Mexico after the country opened up its oil auctions for the private sector in 2013 and 2014 for the first time in nearly 80 years. The company is also one of the most prominents fuel retail brands in the territory, with 500 branded service stations. It also keeps an indirect interest in the nation’s blocks through Hokchi Energy, a joint-venture between Bridas and owned by Pan American Energy.

Related contents

Discuss